July 2023 DA hike almost confirmed to be 4% as May '23 CPI-IW moves upward

The Ministry of Labour and Employment's Labour Bureau recently released the All-India Consumer Price Index for Industrial Workers (CPI-IW) for May 2023.

May 2023 CPI-IW: A Slight Uptick

The May 2023 CPI-IW recorded a marginal increase of 0.5 points, reaching a total of 134.7 points. This is compared to the CPI-IW of 133.3 points in April 2023. The CPI-IW, an important indicator, measures the inflation experienced by industrial workers nationwide. The data is collected from 317 markets in 88 industrially significant centers in India.

Food & Beverages Group: Key Contributor

Within the CPI-IW components, the Food & Beverages group played a significant role, exerting the most upward pressure on the index. This group alone contributed to a 0.39 percentage point increase in the overall change, highlighting the influence of food prices on the May 2023 CPI-IW.

Expected DA Hike from July 2023

Central government employees, who depend on the CPI-IW for calculating their Dearness Allowance (DA), have been eagerly awaiting the release of these numbers. The DA hike, effective from July 2023, relies on the 12-month average CPI-IW index. To determine the upcoming increase, only one more month's of CPI-IW figure is required i.e.June 2023. 

Estimated 4% Increase in DA

Based on the available CPI-IW data, central government employees can anticipate a 4% increase in their Dearness Allowance (DA) from July 1, 2023, taking the total DA to 46%. This expected rise will have a direct impact on the take-home salaries, as the May 2023 CPI-IW figure is available. The hike will be notified by September end or early October 2023.

Stay Informed for Updated DA Calculations

Please note that the figures mentioned in this article are subject to official confirmation and subsequent updates by the Ministry of Labour and Employment. Central government employees should stay informed about any revisions or changes in the CPI-IW data as it directly affects their Dearness Allowance calculations and, consequently, their salaries.You can try the calculation yourself using the StaffCorner Expected Dearness Allowance (DA) from July 2023 Calculator - Click here

Conclusion:

The May 2023 CPI-IW figures indicate a slight increase, primarily driven by the Food & Beverages group. Central government employees can expect a 4% rise in their Dearness Allowance (DA) from July 2023, which will impact their salaries. It is essential for employees to stay updated on the CPI-IW data for accurate calculations of their DA and salary adjustments.

You can try the calculation yourself using the StaffCorner Expected Dearness Allowance (DA) from July 2023 Calculator - Click here